How ecommerce is accelerating the growth of Indian economy in 8 ways

Name the ONE factor that has changed the everyday life and habits of the Indians in last decade?

Clueless?

Let’s have a hint- the change is so profound that it has touched almost every aspect of our economy and put us next to the global leaders on the world map.

Gotcha! Yup, you are right, it’s eCommerce!

India is the world’s fastest growing e-commerce market and with the explosive growth of internet and smartphones, our shopping habits have been revolutionized.

Online shopping tapped on the basic needs of a modern Indian’s lifestyle. It offered products and services that were time saving, affordable and spoilt us for choice. Right from grocery and vegetables to medical opinion, e-commerce brought everything at our doorsteps in few clicks.

What caused rapid evolution of ecommerce in India?

With the stable growth of Indian economy in last decade, living standard of Indians went up considerably. Along with wider internet access and adoption of latest technology, double income families, higher disposable income, fast paced lives, exposure to global markets, easy and safer online payment options and above all COD, contributed to the rapid growth of online commerce in India.

With 34% CAGR Indian e-commerce is expected to multiply 6 folds in the next five years and this growth is changing things for better in the Indian economy.

Impact of e commerce on Indian economy

E-commerce is the biggest thing that happened to India since the mobile revolution. This change has an all pervading impact on the economy and has the potential to reshape the Indian economy by the next decade.

Let’s see how growth of ecommerce would impact various spheres of Indian economy:

Markets in unreachable pockets of India

Online retail is no longer limited to the big towns and cities. The unreachable pockets and 2nd and 3rd tier towns are now being targeted as the largest untapped potential audience by e-commerce companies. They are overcoming infrastructure barriers by creating warehouses in the most remote locations and enabling easier access of goods and services to the remotest corners.

Providing Employment

Currently e-commerce is providing 1 million jobs to the Indian work force. Indian ecommerce industry statisticsforecast a massive growth in employment opportunities in this sector which would create 12 million new jobs in coming decade.

Increased exports

Startup environment has seen a positive growth with the rise of e-commerce. SMEs operating from home or garage are able to sell on popular marketplacesand cater to global audience. This is contributed to increased exports even from the unorganized sectors.

Changing the face of retail

Retail market has been revolutionized by e-commerce. Online stores are offering better choices, deep discounts and convenience of shopping. The combined sales of three top e-commerce players in India is already more than the sales of ten biggest offline retailers. Brick and mortar shops account for only 10% of total retail sales.

Growth of B2B ecommerce companies

Effect of e commerce on Indian economy is not limited to the B2C model. Although the current profits of B2B are not as great as B2C e-commerce, but slowly and certainly it is catching up. B2B market potential stood at USD 300 Billion in 2014 and by 2020 it is expected to reach USD 700 Billion.

Environment for enterprise and Innovation

Engineering, medicine, MBA and other similar jobs were the only professional choice of an average Indian a decade ago. This is fast changing and entrepreneurship is becoming the first career choice of young Indians.

Evolution of ecommerce in India has made technology available for all. Thanks to the future ready, affordable e-commerce platforms even the very young entrepreneurs are able to give wings to their dreams and roll out an online store in no time.

Attracting global players

India has the biggest millennial population of internet savvy youngsters. With greater purchasing power and changed lifestyle and shopping habits, this generation is playing the role of a positive catalyst in the growth of ecommerce.

Given the population size of India it is no wonder that all the ecommerce bigwigs are trying their best to woo Indian customers and plan their strategies targeting the specific needs of Indian audience.

Evolution of ecommerce in India is reshaping the economy in more ways than one. With the government also giving a push to the startup and ecommerce environment Indian economy is poised to witness a momentous change driven by online selling.

StoreHippo is contributing to this change by offering mobile ready e-commerce platform with focus on mobile technology which will be the game changer in future.

Have queries about our plans? Leave a comment below and we would get in touch with you.